Infrastructure development for export competitiveness, rationalisation of stamp duties in respect of mergers and acquisitions of companies, a hike in the borrowing limit, an in-state credit guarantee scheme for MSMEs, and support to the development of southern districts, were among the demands submitted by various industry associations and trade bodies during a pre-Budget meeting with the Tamil Nadu Finance Minister, Palanivel Thiagarajan, on Monday.
Representatives of industry associations such as the Confederation of Indian Industry, the Southern India Chamber of Commerce and Industry, the Agrofood Chamber of Commerce and Industry, as also members of MSME associations such as the Tamil Nadu Small Industries Corporation Ltd (TANSTIA), Ambattur Industrial Estate Manufacturers’ Association, Coimbatore District Small Industries’ Association, and the Consortium of Indian Associations (CIA), among others, were present at the meeting in which Industry Minister, Thangam Thennrasu, MSME Minister, T M Anbarasan, and other top government officials were present.
Infrastructure development
“We requested a stronger focus on infrastructure development to improve exports, while making a plea to get international status for more airports in India as investments flow to different parts of the state,’‘ said a member of an industry association.
There was also a request to rationalise stamp duties for mergers and acquisitions. The rates in Tamil Nadu are reported to be significantly higher than that in states such as Gujarat and Maharashtra.
The Agrofood Chamber requested the Finance Minister to make a strong case to secure ‘International status’ for Madurai airport. A request to expedite works for the metro rail project in Madurai was also made. Tuticorin Port could be converted into a container trans-shipment hub as it would give a fillip to industrial development in southern Tamil Nadu.
MSME associations have sought an increase in the borrowing limit to Rs 2 crore from Rs 40 lakh under the Tamil Nadu Credit Guarantee Scheme, which is described as a unique programme to support MSMEs. Also, loans like the Credit Linked Capital Subsidy Scheme through TIIC should be given without any collateral security and a special scheme for funding start-ups from TIIC, were also requested.
TANSTIA made a plea to effect land price reduction for all SIDCO industrial estates. In December, the state government slashed prices for land in select locations.
K E Raghunathan, Convenor of CIA, requested support measures for MSME units that are not eligible for the ECGLS scheme.
Since sourcing raw materials in small quantities is a bigger challenge for micro-entrepreneurs, the TN Government could look at establishing a Fair Price Centre in every industrial estate set up by SIDCO in partnership with NSIC to procure in bulk from manufacturers directly and to distribute to them at one price for six months in smaller quantities, he said.